A METHODOLOGY FOR DEVELOPING AND MAKING A DECISION TO OUTSOURCE

Authors

Keywords
outsourcing, team, business process, major competences, outsourcing matrix.

Abstract
Nowadays organisations are realizing, more and more, the strategic character of the decision “to outsource or not” and its impact on their whole strategy for their future capacity to compete successfully. The decision “to outsource or not” is not an ordinary business decision by which decision-makers only compare the costs of an individual carrying out a particular process to the costs of contracting the process to an external company. Crafting such a decision is a long and complicated process. It must be done in a structured and rational way and include not only price, but also other factors, and it must not be influenced by outsourcing trends.

This article examines the complete process of developing and making a decision to outsource, which includes the following successive steps: forming a team which is going to make the decision to outsource, and which, if the decision is positive, will manage the whole outsourcing process; defining the objectives which are going to be pursued by using outsourcing; describing and classifying the business processes of the organisation; identifying the major competences of the organisation; defining the business processes which can be forwarded for outsourcing, as well as those which must remain within and under the control of the organisation; analysing the assessment of the factors influencing the decision “to outsource or not,”; and making the final decision.

JEL: D21, L21
Pages: 19

To view the full text of the article click on the relevant button below.

More titles

  • IMPLEMENTATION OF THE INTERESTS OF ENTITIES INVOLVED IN THE SYSTEM OF HIGHER EDUCATION IN UKRAINE

    This paper focuses on the relationship between the state, individuals, employers, and universities based on methods of quantification. The conclusion drawn is that higher education is the basis for socio-economic development and efficiency of the labour market, which could be used by governments in the formation of a policy regarding higher ...

  • SPECIFIC ASPECTS OF MANAGING AN ORGANIC CROP FARM

    The evolution in the development of agricultural technologies has facilitated the spread of organic farming throughout the world. Managerial decisions related to the application of environmental methods of production in Bulgaria provide an opportunity for the realisation of ecological activities by agricultural crop farms. This lays the ...

  • THE ROLE OF INSURANCE CULTURE IN THE DEVELOPMENT OF THE INSURANCE BUSINESS

    This article discusses insurance culture as a factor in the develop¬ment of the insurance business. The author assumes that the image of insurers is directly dependent on insurance culture. Special attention is paid to management and its role in raising the level of in-surance culture. On the basis of practical experience, insurance culture is ...